Estate Agents - to cut fees, or increase them?

[googler]

"I have no doubt you will twist and turn to argue against me as always"

Charming.

[googler]

Let's take the first one in your list - Housenetwork - I don't see anything special about their web presence that marks them out for distinction. It's a website, with a property search facility, that encourages sellers to place their property therein for what they claim is much less than a 'traditional' agent would charge. It's not surprising it's cheaper, as all they're doing is providing a web presence, along with a bare-bones service.

You tell us - what's special about it? The map-based search? If not, what?

[googler]

'Us' as in the forum here - me, and anyone other readers or writers who are participating or want to participate.

What on earth don't you understand about my question? How much simpler can I put it?

You said "An internet business which offers exactly the same level of service except for viewings and advertises in the same if not more places for a fraction of the price. "

Here's where we differ - it doesn't offer exactly the same level of service - it offers a branded website, and an entry into a property portal or portals, i.e. it offers what I see as PART of the service. It doesn't appear to offer anything else. It's just a website. What's special about a website these days? The high street agents have websites, too, and have access to the same portals, don't they?

So, again, I don't see why this website is anything special in terms of how "internet is being usefully applied to the industry". It's just a listing website.

"The web prescence permits a low cost base"

It's special because it's cheap - is that what you're saying? Of course the fact that they ONLY offer a web presence leads to low outlays for them - I would expect lower outlays and lower expenses of anyone who offers a cut-down service, in any field.

[drhouse]

Originally Posted by Homeseller

You haven't looked at the website. I think you need to have a look at the House Network site a bit more thoroughly and then come back and comment again because you've got it all wrong and seem to be making your own conclusions based on inaccurate information.

Their service is not cut down by much (just viewings) and it's FAR from just a listing website. They value the property, view it, take photos floor plans etc., negotiate all offers and follow through until exchange. They also have a network of 4m buyers that have registered with them.

Does this really look to you as if it is just a listings website? Do you really think "they ONLY offer a web prescence"? If this is the case then I predict you'll be out of business in 5 years tops. This is exactly how the "internet is being usefully applied to the industry" along with the several other websites I quoted which you've oddly chosen not to comment on.

Have a look at the website and then come back to me please.

Maybe I am missing something here but I couldn't find anywhere to register as a buyer. If there isn't where do their 4m buyers come from then ?

[googler]

Originally Posted by drhouse

Maybe I am missing something here but I couldn't find anywhere to register as a buyer. If there isn't where do their 4m buyers come from then ?

If other forums are to be believed, their buyer base all/mostly all comes in via Rightmove. Housenetwork is seen as a low-cost way to get onto Rightmove.

[googler]

Originally Posted by Homeseller

You haven't looked at the website. I think you need to have a look at the House Network site a bit more thoroughly and then come back and comment again because you've got it all wrong and seem to be making your own conclusions based on inaccurate information.

Their service is not cut down by much (just viewings) and it's FAR from just a listing website. They value the property, view it, take photos floor plans etc., negotiate all offers and follow through until exchange. They also have a network of 4m buyers that have registered with them.

Does this really look to you as if it is just a listings website? Do you really think "they ONLY offer a web prescence"? If this is the case then I predict you'll be out of business in 5 years tops. This is exactly how the "internet is being usefully applied to the industry" along with the several other websites I quoted which you've oddly chosen not to comment on.

Have a look at the website and then come back to me please.

I have looked at this website, I looked at it long before this conversation.

Yes, they do a little bit of the manual work, but it was you who said this was an example of how the "internet is being applied to the industry" - so I commented on the 'internet' aspect of their service. In terms of this, it's a listings website that links to a portal or two. I can't find anything special about it as a website.

"They value the property....." - so what? They do a little bit of what an agent should do as part of their cut-down service. You agree it's a cut-down service, don't you ("Their service is not cut down by much....")?

In terms of their (marketing) presence, their only presence is on the internet - they don't have high-street premises, they don't seem to advertise their properties in print, their 'agents' don't seem to do anything except measure, photo, then disappear and handle everything else from their 'call centre'. No interaction, no face-to-face involvement with their clients, nothing like that. No interaction with viewers and buyers other than on the end of the phone. No presence in the local community where the property is listed.

If this website is an example of 'how the internet is being applied to the industry', how does it differ from any high-street agent's website which also links to Rightmove? It doesn't, as far as I can see - except that you say HN are cheaper overall - which with a reduced service set, isn't too surprising. If the additional 'presence' is that they turn out to measure and take photos, etc., then I fail to see how these tasks are related to how the 'internet is being applied to the industry'...... carrying out these tasks doesn't really qualify as a marketing presence.

Yes, I know I haven't commented on the others. I've probably given too much time to this one already; maybe later.

[googler]

This popped up in one of my searches today, and may be relevant to the discussion;

"Agent with big ideas loses the Wow factor

Wow Property, the estate agents that promised to revolutionise the way houses are sold and bought, has gone into administration.

Wow offered a fixed fee of £999, irrespective of the value of the property. It launched in August 2008 with what it said was a workforce of 200 agents all over the country. It planned up to 600 by the end of 2009.
Based in Guildford, Surrey, it promised locally-based agents, armed with the local knowledge and experience to undertake valuations and viewings. Each customer was also to be provided with a qualified account hander, proactively managing every aspect of selling the property.

At launch, it declared: “No other nationwide estate agents provides a fully comprehensive marketing service at a fixed fee of £999.”
Gareth Robinson, CEO, said at the time: “Currently over 90% of houses are bought and sold through high street estate agents, but that’s about to change. The current market downturn has accelerated consumer need for a value for money solution. We have developed our business around this exact demand, allowing us to provide a high quality and personal service with the lowest fixed fee on the market. UK vendors are dissatisfied with the quality of service they receive and are demanding more from their agents. Wow Property has developed its business to provide exactly what these vendors want: a proactive, value for money, full service estate agent that will sell their property for the best price in the fastest time.”

However, it seems the downturn has now claimed Wow.
Telephone callers were yesterday told that the company had entered administration and had needed volume of business to survive.
Although the Wow Property website can still be found, the properties listed appear to be shared equity offerings. Searches for the website itself persistently divert to a website for the Shared Ownership Company.
"

from estateagenttoday.co.uk

[drhouse]

Originally Posted by googler

This popped up in one of my searches today, and may be relevant to the discussion;

"Agent with big ideas loses the Wow factor

Wow Property, the estate agents that promised to revolutionise the way houses are sold and bought, has gone into administration.

Wow offered a fixed fee of £999, irrespective of the value of the property. It launched in August 2008 with what it said was a workforce of 200 agents all over the country. It planned up to 600 by the end of 2009.
Based in Guildford, Surrey, it promised locally-based agents, armed with the local knowledge and experience to undertake valuations and viewings. Each customer was also to be provided with a qualified account hander, proactively managing every aspect of selling the property.

At launch, it declared: “No other nationwide estate agents provides a fully comprehensive marketing service at a fixed fee of £999.”
Gareth Robinson, CEO, said at the time: “Currently over 90% of houses are bought and sold through high street estate agents, but that’s about to change. The current market downturn has accelerated consumer need for a value for money solution. We have developed our business around this exact demand, allowing us to provide a high quality and personal service with the lowest fixed fee on the market. UK vendors are dissatisfied with the quality of service they receive and are demanding more from their agents. Wow Property has developed its business to provide exactly what these vendors want: a proactive, value for money, full service estate agent that will sell their property for the best price in the fastest time.”

However, it seems the downturn has now claimed Wow.
Telephone callers were yesterday told that the company had entered administration and had needed volume of business to survive.
Although the Wow Property website can still be found, the properties listed appear to be shared equity offerings. Searches for the website itself persistently divert to a website for the Shared Ownership Company.
"

from estateagenttoday.co.uk

I saw that today as well and my first thought was this thread !

[googler]

Great minds.....

[drhouse]

[quote=Homeseller;8857]......are not present on this site!

quote]

Perhaps not when you are around.

Why did WOW fail ? The money men who ran it ran out of money, realised it was not as easy as it looked or got bored. Who knows. It only started in August 2008 so they didn't exactly show commitment.

There obviously wasn't the demand they thought there would be. You know people complain about Estate Agents all the time, including many who have never ever used them, but ultimately most people do not want to entrust their most valuable asset to a faceless organisation.

Why do you think they failed ?